In a competitive market,a firm has a difficult time capturing value due to the large number of rivals.However,it can be successful in capturing value if the
A)firm's cost curves are higher than those of rivals.
B)firm's superior productivity is based on value of the whole organization.
C)firm's superior productivity is based on selected components of superiority within the firm.
D)demand for the firm's product is inelastic.

Question

Quizplus · Accepted Answer

A firm can capture value in a competitive market if it has a superior productivity, which is based on the value of the whole organization rather than just selected components. This will enable the firm to differentiate itself from its rivals and create a unique value proposition that customers are willing to pay for. Therefore, option B is the best choice. Options A and D are not relevant to this situation, and option C implies that the firm's productivity is only partially superior, which may not be enough to capture value in a competitive market.

In a Competitive Market,a Firm Has a Difficult Time Capturing